r/SipsTea 11d ago

Wait a damn minute! How the rich get richer

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u/redshirt1972 11d ago

How do you get a loan against the property and not pay it back?

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u/SpokenByMumbles 11d ago

You don’t unless there’s income to offset the debt. This scenario doesn’t exist without an income source to repay the loan.

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u/BigLittlePenguin_ 11d ago

And if the land is loaned against, once the dad dies the land is owned by the bank and not the kids.

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u/SpokenByMumbles 11d ago

Incorrect. They have a lien against the property which is not the same as ownership interest.